Real Estate: For the first time in India, apartments priced above Rs 1 crore accounted for more than 50% of annual residential sales. This reflects a significant shift in the preferences of home buyers in India. This was revealed in the 2024 report released by real estate consultancy firm JLL.
According to Dr. Samantak Das, Head and Chief Economist, REIS India, there has been an 86% increase in the premium segment (Rs 3-5 crore) and 80% increase in the luxury segment (Rs 5 crore and above) in purchasing apartments, Which is much higher than 2023. The major reasons behind this increase are the increase in income of high-net-worth individuals (HNWIs), demand for tech-enabled homes and increasing preferences of people for safe homes.
Rs 3-5 crore segment: Sales of this segment increased by 86%, accounting for 9% of total sales in 2024, compared to only 5% in 2023.
Above Rs 5 crore segment: The luxury market grew by 80%, contributing 5% of total sales in 2024, compared to 3% in 2023.
Nearly 302,000 residential units are slated to be launched in 2024, the largest ever annual residential supply among the top 7 cities.
On an annual basis, launches in 2024 are up marginally by about 3%. Mumbai, Bengaluru and Hyderabad accounted for 60% of the annual launches. Tech cities like Bengaluru, Chennai, Hyderabad and Pune accounted for nearly 60% of the launches in 2024 due to the expansion of their commercial office sector.
Due to this unprecedented sales, the average annual sales in 2024 in the post-pandemic years (2022-2024) will exceed the average annual sales of the previous decade (2010-2019) by almost 63%.
A total of 72,930 units were sold in Q4 2024, a slight decline of about 3% compared to the same period last year. Bengaluru, Mumbai and Pune accounted for about 64% of the quarterly sales. Homes priced at Rs 3 crore and above saw a steady rise in demand, accounting for 14% share in quarterly sales.
Shiva Krishnan, Senior Managing Director (Chennai and Coimbatore) and Head of Residential Services, JLL India, said, “Residential supply in 2024 maintained pace with sales crossing the 300,000 units mark. Housing supply has seen a sustained increase in housing supply in the post-pandemic years, resulting in an increase of nearly 47% compared to the average annual launch over 2010-2019. “Given the growing demand for high-end housing, developers have focused on launching projects in the premium and luxury segments, as evidenced by the YoY growth in their launches by 101% and 68% respectively.”
Delhi NCR recorded the highest year-on-year growth in launches, while Bengaluru saw the highest launches. Residential price growth continued in India’s top seven cities (Delhi NCR, Mumbai, Chennai, Hyderabad, Bengaluru, Pune, Kolkata) in Q4 2024, with year-on-year price increases ranging from about 5% to 20%. Delhi NCR recorded the highest price rise at around 20%, followed by Bengaluru at around 14%. Residential capital values in Chennai, Hyderabad and Kolkata also increased by around 10% each.